Page:United States Statutes at Large Volume 100 Part 4.djvu/247

 PUBLIC LAW 99-563—OCT. 27, 1986

100 STAT. 3175

acting pursuant to the surplus lines laws and regulations of such State.". SEC. 7. CONCERNING AUTHORITY OF STATES TO ENJOIN CERTAIN CONDUCT.

. Section 3 (15 U.S.C. 3902), as amended by section 5(b) of this Act, is further amended by adding at the end the following new subsection: "(e) Nothing in this section shall be construed to affect the authority of any Federal or State court to enjoin— "(1) the solicitation or sale of insurance by a risk retention group to any person who is not eligible for membership in such group; or "(2) the solicitation or sale of insurance by, or operation of, a risk retention group that is in hazardous financial condition or is financially impaired.".

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SEC. 8. ADDITIONAL CLARIFICATION OF PERMISSIBLE STATE AUTHORITY. (a) CLARIFICATION OF STATE AUTHORITY RESPECTING RISK RETEN-

TION GROUPS.—Section 3 (15 U.S.C. 3902), as amended by sections 5(b) and 7 of this Act, is further amended by adding at the end the following new subsections: "(f)(1) Subject to the provisions of subsection (a)(1)(G) (relating to injunctions) and paragraph (2), nothing in this Act shall be construed to affect the authority of any State to make use of any of its powers to enforce the laws of such State with respect to which a risk retention group is not exempt under this Act. "(2) If a State seeks an injunction regarding the conduct described in paragraphs (1) and (2) of subsection (e), such injunction must be obtained from a Federal or State court of competent jurisdiction. "(g) Nothing in this Act shall affect the authority of any State to bring an action in any Federal or State court. "(h) Nothing in this Act shall be construed to affect the authority of any State to regulate or prohibit the ownership interest in a risk retention group by an insurance company in that State, other than in the case of ownership interest in a risk retention group whose members are insurance companies.". (b) CLARIFICATION OF STATE AUTHORITY RESPECTING PURCHASING

GROUPS.—Section 4 (15 U.S.C. 3903), as amended by section 6 of this Act, is further amended— (1) in subsection (a), by inserting "and section 6" after "section"; and (2) by adding at the end the following new subsections: "(g) Nothing in this Act shall be construed to affect the authority of any State to make use of any of its powers to enforce the laws of such State with respect to which a purchasing group is not exempt under this Act. "(h) Nothing in this Act shall affect the authority of any State to bring an action in any Federal or State court.". (c) OTHER CLARIFICATION.—The Act is further amended by adding at the end the following new section:

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"CLARIFICATION CONCERNING PERMISSIBLE STATE AUTHORITY

"SEC. 6. (a) Nothing in this Act shall be construed to exempt a risk retention group or purchasing group authorized under this Act from

Motor vehicles. ^^ ^SC 3905.

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